information, price expectations, and economic activities. This role is fulfilled when policymakers maintain inflation stability …. Inflation persists less when an implicit or explicit inflation target is met. Granato and Wong argue that inflation persistence … is reduced when the public substitutes the prespecified inflation target for past inflation. A by-product of this co …

of historical changes in the design of U.S. monetary policy and in the implied central-bank target for inflation …. Empirical results support a description of policy with an effective inflation target of roughly 7 percent in the 1970s. Moreover … Inflation while favouring a passive-policy description of monetary policy. FOMC transcripts provide a neglected interpretation …